Liquified Gas — Distribution of Tax

  1. Law
  2. Tennessee Code
  3. Taxes and Licenses
  4. Petroleum Products and Alternative Fuels Tax Law
  5. General Administrative Provisions
  6. Liquified Gas — Distribution of Tax

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  1. The tax imposed by chapter 203 of the Acts of 1983 shall be distributed as follows:
    1. One and fifty-eight hundredths percent (1.58%) to the general fund;
    2. Twenty-eight and twenty-eight hundredths percent (28.28%) to the counties to become a part of the county highway fund in the following manner:
      1. Fifty percent (50%) equally among all counties;
      2. Twenty-five percent (25%) on the basis of population; and
      3. Twenty-five percent (25%) on the basis of area;
    3. Fourteen and fourteen hundredths percent (14.14%) to municipalities, as defined in § 54-4-201, on the basis set out in § 54-4-203; and
    4. Fifty-six percent (56%) to the highway fund.
  2. Revenues from the increases in taxes imposed by chapter 931 of the Acts of 1986, shall be distributed and allocated as follows:
    1. Revenue from the first three cents (3¢) per gallon of such increases in taxes shall be apportioned as follows:
      1. Amounts required to be paid to the debt service fund pursuant to title 9, chapter 9; and
      2. All other amounts to the highway fund to be used for accelerating the resurfacing of the state system of highways in order to establish a cycle of resurfacing during the period from 1986 to 1998; and for new construction in the primary system of highways; and
    2. Revenue from one cent (1¢) of such increases in taxes shall be apportioned as follows:
      1. Of such amount designated in subdivisions (b)(2)(B) and (C) for distribution to counties and cities, one percent (1%) shall be subtracted from the amount designated for counties and one percent (1%) shall be subtracted from the amount designated for cities for distribution to the general fund for expenses of administration prior to the distribution of the funds to the counties or cities;
      2. Sixty-six and two-thirds percent (662/3%) of such revenues collected to the various counties of the state on the basis set out in § 54-4-103; and
      3. Thirty-three and one-third percent (331/3%) of such revenues collected to the various municipalities, as defined by § 54-4-201, on the basis set out in § 54-4-203.
  3. All revenues and investment income derived from the increase in the liquified gas tax imposed by chapter 46 of the Acts of 1989 shall be placed in the state highway fund, and shall not be subject to the apportionment and distribution provisions of subsections (a) and (b).
  4. Revenues derived under § 67-3-1102 from the increase in taxes imposed by chapter 181 of the Public Acts of 2017 shall be distributed to the highway fund.


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